1978 (1) TMI 60

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....Vijaypat Singhania, the assessee, was, in the year 1944-45, a minor. He had been admitted to the benefits of a partnership firm, Messrs. Juggilal Kamlapat. This firm acted as managing agents of Messrs. J.K. Cotton Manufacturers Ltd. The company prematurely terminated the managing agency of the firm and paid Rs. 2,50,000 as compensation to the firm. The firm claimed this amount as a capital receipt....

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....his claim. The findings were confirmed by the Appellate Assistant Commissioner as well as the Tribunal. At the instance of the assessee, the Tribunal has referred the following question of law for our opinion : "On the facts and circumstances of the case, whether the assessee was entitled for rebate on the payment of income-tax on the sum of Rs. 66,406 under the Notification No. 878-F, dated Ma....

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....gredients of the aforesaid notifications is that the sum received by the assessee must represent salary, bonus, commission or other remuneration "for services rendered to the person for the purposes of his business". Evidently, the firm did not receive this money on account of services rendered to the company for purposes of the company's business. In that view, it can hardly be said that the asse....